Add Renewable Energy to Your Home and Enjoy Federal Tax Credits

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Not only will you have peace of mind and lower utility bills when you add clean, renewable energy to your home, but you’ll also benefit from new and improved federal tax credits.  Installing such systems as solar panels and solar water heaters, small wind energy systems, geothermal heat pumps, biomass stoves, and fuel cells, will allow owners of new and existing homes to claim a tax credit of 30% of the cost of the system.

The tax credits are now in effect when these systems are “placed in service” between January 1, 2009 and December 31, 2016.

  • All Energy Star labeled geothermal (closed loop, open loop and direct expansion) heating/cooling systems are eligible for the tax credit.  Geothermal systems can also be fitted to provide household hot water too.
  • All Energy Star labeled electric heat pump water heaters and all gas tankless water heaters qualify for the tax credit, although a $1500 cap is in effect.  Some of the most efficient Energy Star labeled gas storage and gas condensing water heaters also qualify for the tax credit.
  • Biomass stoves, which burn biomass fuel to heat a home or heat water, will qualify for the tax credit, up to the $1500 cap.
  • Photovoltaic systems, which provide electricity for a residence, qualify for the tax credit with no cap.
  • Solar hot water systems certified by the Solar Rating and Certification Corporation (SRCC) are eligible for the tax credit with no cap.
  • Small wind energy systems generate clean electricity and qualify for the tax credit and are not limited to the $1500 cap.
  • Fuel cells provide clean electricity through the combination of oxygen and hydrogen, a process that is two to three times more efficient than fossil fuel burning.  Those systems that have a capacity of at least 0.5 kW are eligible for the tax credit.

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Tag(s): Energy, Greenhouse Gas Emissions / Global Warming, Greening the Home, Money Saving


2 Responses to “Add Renewable Energy to Your Home and Enjoy Federal Tax Credits”

  1. Mandy on August 4th, 2009 11:40 pm

    I think it is fantastic how the stimulus funds are making a difference. They are being taken advantage of all the time with the installation of geothermal heat pumps to replace high energy heating and cooling systems.

  2. Home Solar Energy on September 13th, 2009 8:57 am

    The credits do help, but the upfront cost is still quite a lot for most people to come up with. Hopefully the credits will still be in existence when the price drops to a level that consumers don`t mind paying.

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